All Forum Posts by: John Carbone

Hey Cathy, 

They just released a second mortgage option on non owner occupied residences. You can do both full doc and bank statement only. 

CLTV is up to 75% (1st + 2nd) on bank statement only

CLTV is up to 80% (1st + 2nd) on a full doc loan

Maximum Loan amount is $450k, terms are 10,15 yr, 30 yr fixed fully amortized loan. 

Smaller houses might be a smaller price point, but smaller houses also typically cost more price per sq. ft. If the price per sq. ft. is going up, it is very possible that smaller houses are selling more often than larger houses. If houses are less affordable due to higher interest rates, it would make sense to buy smaller houses at a lower price point that are more practical. 

Nationally, prices go down almost every winter. As a result, month over month data is not very helpful. To compare apples to apples, you need year over year data. 

For my current home, I got a 7% discount because I bought it in November (280K) and not May/June (300K). After we closed, I got a chance to chat with the seller and we both agreed that he would have gotten 300K if he listed in May/June. House is now worth 380K in January 2023. One could make the argument that it might have sold for 400K in May/June 2022. However, that's not a crash. That's just normal seasonal sales variability. Prices are almost always higher in the summer and then take a small dip in the winter. The last two winters have been the exception.  

Sweat equity. Do it yourself. Rent tractor and backhoes for trenching. Pour your own pads, build your own structures. Figure it out. Huge savings for you....

I have been looking to gather some private money to expand my glamp site near Houston. Has anyone raised money for this or found investors? Any tips on where to start besides family and friends? I've funded most by myself and my business partner but trying to see what are some ideas out there. Thanks! 

Quote from @John Carbone:

Quote from @Michael Wooldridge:

And look at that. 2022 was the second best year on record for job growth (only behind 2021) and boomers are retiring finally which is creating more pressure. Things are going to conitnue to be fun but the job market is going to continue to be strong.

Real nice article on this trend here: https://www.nytimes.com/2023/0...

Why are real wages down then?

People tend to not get pay raises until the beginning of the year/q1. Even then November was only 1.9% down after a fair amount of growth. Inflation is fun. Whats also fun if job market is tight and boomers keep retiring then employers will offer more or diff benefits. 

regardless inflation will hurt low wage employees but even those are much higher look at taco bell hiring at like $18 an hour. 

And look at that. 2022 was the second best year on record for job growth (only behind 2021) and boomers are retiring finally which is creating more pressure. Things are going to conitnue to be fun but the job market is going to continue to be strong.

Real nice article on this trend here: https://www.nytimes.com/2023/0...

Quote from @Greg R.:

Unfortunately I've been away for a few months while taking care of some personal matters, so I haven't been able to keep up on discussions. 

However, several months ago there were ample amount of folks here insisting that a market crash/ correction was impossible and that prices would only continue to increase.

Curious if there are still people out there who feel this way? If so, I'd love to see some data that supports your view that the market isn't going to crash/ correct. 

 2751 replies, holy lol

This is quite the conversation that I am late to. I am going to enjoy reading through all of this.

Quote from @Chris John:

@Carlos Ptriawan

" Well well well
philosopically speaking , the entire real estate in America IS Bullsht industry anyway
Just think about it , In 10 years I acquire one million dollar without adding any more of labour productivity , suddenly it appreciate so much because the Fed has money to be printed ..now when that printer is turned off , people in BP is screaming lol
I guess we are all lucky in that aspect as we understand this BS game of america real estate industry , we gained because we understand how to play it well, with the tenant paying the cost."

I've been trying to explain this to my coworkers, but have had very limited success.  A couple of thoughts that I'm uncomfortable with, but have been trying to become more okay with:

1.  I am sad that my grandparents got ahead by working hard and saving, but I got ahead by borrowing.  It feels wrong, but...

2.  I used to feel bad for those renters that you're referring to, but they keep voting for it over and over and over again.  I explained to my students how giving money to everyone hurts those at the bottom the most.  We all get money, prices for everything inflate, then the money runs out, but the prices never come back down.  Renters keep paying higher rents and owners siphon that excess money into their pockets.  Won't stop the next handout though...

anywhere in the world is the same, the land owner is going to enjoy the land appreciation while productivity/wage remains down ; which basically means only land owner could survive in the long run, the 9-5 renter would just living paycheck-to-paycheck. @James Hamling is quite right US is going to be renter nation , it's like in the old feudal world. The renter is working for the landlord class lol. 

While your student is being "possesed" by the Wall-Street banks that sell consumerism dream ; you could have a loan to buy Tesla, truck , SUV, 24 hour vacation in Hawaii , Gucci and all instagrammable fashion design clothes ; while the landlord and banker (like us) is lending our own money, house, STR,etc to them LOL

Investing is the only way to survive rather than being taken out for consumerism. lol